Infrastructure Sector - DRIVEN BY GOVERNMENT INITIATIVES AND TAILWINDS
Dalal Street Investment Journal|April 10, 2023
The success of the infrastructure industry is regarded as an indicator of economic growth. Mandar Wagh explains how the government's focus on infrastructure, increased capital expenditure, initiatives such as the National Infrastructure Pipeline and the PM Gati Shakti National Master Plan as well as developments including electric vehicles, will all contribute to growth
Mandar Wagh
Infrastructure Sector - DRIVEN BY GOVERNMENT INITIATIVES AND TAILWINDS

Infrastructure is a segment of the construction industry which also includes real estate and urban development. The primary building blocks of the infrastructure industry include roads, highways, railways, electricity, telecommunication systems, water supply, dams, airports, warehousing facilities and gas pipelines. While achieving social objectives such as ensuring that all citizens have access to basic services and amenities, infrastructure development also generates significant employment and boosts connected industries like real estate, telecommunication and power. The success of the infrastructure industry is regarded as an indicator of economic growth.

This is because it acts as the backbone of any economy. The financial year 2021-2022 marked the biggest-ever yearly FDI inflow to India, totalling USD 83.57 billion. The Indian infrastructure industry is expected to grow at a CAGR of more than 8 per cent over the next five years. Around 70 per cent of India’s projected capital expenditure on infrastructure is expected to be invested in such sectors as energy, roads, urban development and railways. As a result, EPC companies will experience rapid growth in their overall business and revenue in the coming years.

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